Magellan Health
Market Cap
US$2.4b
Last Updated
2021/01/28 00:35 UTC
Data Sources
Company Financials +
Executive Summary
Magellan Health, Inc., together with its subsidiaries, provides healthcare management services in the United States. More Details
Snowflake Analysis
Adequate balance sheet and fair value.
Similar Companies
Share Price & News
How has Magellan Health's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MGLN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: MGLN's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-1.3%
MGLN
-5.2%
US Healthcare
-2.7%
US Market
1 Year Return
25.5%
MGLN
14.5%
US Healthcare
21.2%
US Market
Return vs Industry: MGLN exceeded the US Healthcare industry which returned 16.2% over the past year.
Return vs Market: MGLN exceeded the US Market which returned 24.3% over the past year.
Shareholder returns
| MGLN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | -5.2% | -2.7% |
| 30 Day | 13.2% | -0.4% | 1.8% |
| 90 Day | 25.0% | 15.2% | 16.4% |
| 1 Year | 25.5%25.5% | 15.9%14.5% | 23.9%21.2% |
| 3 Year | -6.4%-6.4% | 29.2%23.8% | 43.7%34.2% |
| 5 Year | 62.2%62.2% | 89.5%75.6% | 124.3%99.2% |
Long-Term Price Volatility Vs. Market
How volatile is Magellan Health's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Magellan Health, Inc. (NASDAQ:MGLN) Is Up But Financials Look Inconsistent: Which Way Is The Stock Headed?1 month ago | Simply Wall St
Are Magellan Health's (NASDAQ:MGLN) Statutory Earnings A Good Guide To Its Underlying Profitability?2 months ago | Simply Wall St
Magellan Health, Inc. Beat Analyst Profit Forecasts, And Analysts Have New EstimatesValuation
Is Magellan Health undervalued compared to its fair value and its price relative to the market?
28.51x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate MGLN's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate MGLN's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: MGLN is good value based on its PE Ratio (28.5x) compared to the US Healthcare industry average (29.8x).
PE vs Market: MGLN is poor value based on its PE Ratio (28.5x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: MGLN is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: MGLN is good value based on its PB Ratio (1.5x) compared to the US Healthcare industry average (3.6x).
Next Steps
Future Growth
How is Magellan Health forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
32.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGLN's forecast earnings growth (32.4% per year) is above the savings rate (2%).
Earnings vs Market: MGLN's earnings (32.4% per year) are forecast to grow faster than the US market (21.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGLN's revenue is expected to decline over the next 3 years (-1.2% per year).
High Growth Revenue: MGLN's revenue is forecast to decline over the next 3 years (-1.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MGLN's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Magellan Health performed over the past 5 years?
1.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGLN has a large one-off loss of $24.8M impacting its September 30 2020 financial results.
Growing Profit Margin: MGLN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MGLN's earnings have grown by 1% per year over the past 5 years.
Accelerating Growth: MGLN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MGLN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (20.7%).
Return on Equity
High ROE: MGLN's Return on Equity (5.2%) is considered low.
Next Steps
Financial Health
How is Magellan Health's financial position?
Financial Position Analysis
Short Term Liabilities: MGLN's short term assets ($2.3B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: MGLN's short term assets ($2.3B) exceed its long term liabilities ($701.0M).
Debt to Equity History and Analysis
Debt Level: MGLN's debt to equity ratio (39.4%) is considered satisfactory.
Reducing Debt: MGLN's debt to equity ratio has increased from 21.9% to 39.4% over the past 5 years.
Debt Coverage: MGLN's debt is not well covered by operating cash flow (8.1%).
Interest Coverage: MGLN's interest payments on its debt are well covered by EBIT (6.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Magellan Health current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MGLN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MGLN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MGLN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MGLN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MGLN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Ken Fasola (60 yo)
1.17yrs
Tenure
US$4,880,754
Compensation
Mr. Kenneth John Fasola, also known as Ken, serves as Chief Executive Officer of Magellan Health, Inc. since November 2019 and has been its Director since November 14, 2019. He is responsible for Magellan’...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD4.88M) is about average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Insufficient data to compare Ken's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.17yrs | US$4.88m | 0.020% $ 485.0k | |
| Chief Human Resources Officer | 17yrs | US$1.68m | 0.094% $ 2.3m | |
| Chief Executive Officer of Magellan Rx Management | 5.5yrs | US$2.91m | 0.011% $ 263.2k | |
| President & COO | 1.08yrs | no data | 0.025% $ 595.9k | |
| Chief Financial Officer | 0.33yr | no data | no data | |
| SVP - Corporate Finance | no data | no data | no data | |
| Chief Investor Relations Officer | 0.50yr | no data | no data | |
| General Counsel & Secretary | 0.92yr | no data | no data | |
| Chief External Affairs Officer | no data | no data | no data | |
| Senior Vice President of Sales - Health Plan & Insurance Markets | 17.25yrs | no data | no data | |
| Chief Medical Officer | 6.33yrs | no data | no data | |
| Chief Growth Officer | 0.75yr | no data | no data |
1.1yrs
Average Tenure
53yo
Average Age
Experienced Management: MGLN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.17yrs | US$4.88m | 0.020% $ 485.0k | |
| Independent Chairman | 1.5yrs | US$1.72m | 0.10% $ 2.5m | |
| Independent Director | 1.83yrs | US$259.44k | 0.028% $ 669.4k | |
| Independent Director | 0.58yr | no data | 0.0083% $ 197.8k | |
| Independent Director | 2.67yrs | US$250.05k | 0.024% $ 564.7k | |
| Independent Director | 1.83yrs | US$255.63k | 0.019% $ 457.5k | |
| Independent Director | 4.17yrs | US$271.30k | 0.038% $ 913.8k | |
| Independent Director | 1.83yrs | US$282.27k | 0.011% $ 259.7k | |
| Independent Director | 0.58yr | no data | 0.0083% $ 197.8k |
1.8yrs
Average Tenure
56yo
Average Age
Experienced Board: MGLN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.
Top Shareholders
Company Information
Magellan Health, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Magellan Health, Inc.
- Ticker: MGLN
- Exchange: NasdaqGS
- Founded: 1969
- Industry: Managed Health Care
- Sector: Healthcare
- Market Cap: US$2.387b
- Shares outstanding: 25.61m
- Website: https://www.magellanhealth.com
Number of Employees
Location
- Magellan Health, Inc.
- 4801 East Washington Street
- Phoenix
- Arizona
- 85034
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGLN | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Common Stock | US | USD | Jul 1992 |
| MAH1 | DB (Deutsche Boerse AG) | Yes | Ordinary Common Stock | DE | EUR | Jul 1992 |
Biography
Magellan Health, Inc., together with its subsidiaries, provides healthcare management services in the United States. The company operates in Healthcare and Pharmacy Management segments. The Healthcare segm...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/28 00:35 |
| End of Day Share Price | 2021/01/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.